Solved

Sure Ltd Purchased Goods for £210,000 from a British Supplier

Question 23

Multiple Choice

Sure Ltd purchased goods for £210,000 from a British supplier on 1 April 2005.The amount owing on the purchase is payable on 30 July 2005.On 1 May 2005 a forward-exchange contract for the delivery of £210,000 on 30 July 2005 is taken out with Aus Bank.Exchange rates are as follows: Sure Ltd purchased goods for £210,000 from a British supplier on 1 April 2005.The amount owing on the purchase is payable on 30 July 2005.On 1 May 2005 a forward-exchange contract for the delivery of £210,000 on 30 July 2005 is taken out with Aus Bank.Exchange rates are as follows: What entries are required to record the initial transaction and the forward-exchange contract in accordance with AASB 121 and AASB 139 (rounded to the nearest whole $A) ? A) B) C) D) E) None of the given answers. What entries are required to record the initial transaction and the forward-exchange contract in accordance with AASB 121 and AASB 139 (rounded to the nearest whole $A) ?


A) Sure Ltd purchased goods for £210,000 from a British supplier on 1 April 2005.The amount owing on the purchase is payable on 30 July 2005.On 1 May 2005 a forward-exchange contract for the delivery of £210,000 on 30 July 2005 is taken out with Aus Bank.Exchange rates are as follows: What entries are required to record the initial transaction and the forward-exchange contract in accordance with AASB 121 and AASB 139 (rounded to the nearest whole $A) ? A) B) C) D) E) None of the given answers.
B) Sure Ltd purchased goods for £210,000 from a British supplier on 1 April 2005.The amount owing on the purchase is payable on 30 July 2005.On 1 May 2005 a forward-exchange contract for the delivery of £210,000 on 30 July 2005 is taken out with Aus Bank.Exchange rates are as follows: What entries are required to record the initial transaction and the forward-exchange contract in accordance with AASB 121 and AASB 139 (rounded to the nearest whole $A) ? A) B) C) D) E) None of the given answers.
C) Sure Ltd purchased goods for £210,000 from a British supplier on 1 April 2005.The amount owing on the purchase is payable on 30 July 2005.On 1 May 2005 a forward-exchange contract for the delivery of £210,000 on 30 July 2005 is taken out with Aus Bank.Exchange rates are as follows: What entries are required to record the initial transaction and the forward-exchange contract in accordance with AASB 121 and AASB 139 (rounded to the nearest whole $A) ? A) B) C) D) E) None of the given answers.
D) Sure Ltd purchased goods for £210,000 from a British supplier on 1 April 2005.The amount owing on the purchase is payable on 30 July 2005.On 1 May 2005 a forward-exchange contract for the delivery of £210,000 on 30 July 2005 is taken out with Aus Bank.Exchange rates are as follows: What entries are required to record the initial transaction and the forward-exchange contract in accordance with AASB 121 and AASB 139 (rounded to the nearest whole $A) ? A) B) C) D) E) None of the given answers.
E) None of the given answers.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q2: Issues in relation to foreign currency arise

Q13: Inventory is an example of a monetary

Q19: AASB 121 requires foreign currency transactions to

Q21: There are two broad categories of foreign

Q22: The effect of a fall in the

Q24: An exception to the requirement that foreign

Q25: On 1 July 2006 McGrath Ltd enters

Q26: Examples of monetary items that may be

Q27: AASB 121 requires that foreign currency monetary

Q28: The Big Mac index is:
A) An indicator

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents